Loading...
HomeMy WebLinkAbout06/23/2021 FC MinutesFINANCE COMMISSION MEETING MINUTES Thursday, June 23, 2021 Mount Prospect Police Headquarters 911 E. Kensington Rd., Mount Prospect, IL I. Call to Order Meeting called to order at 7:04 p.m. Commission members present: Kenneth Arndt, Pam Bazan, Yulia Bjekic, Trisha Chokshi, Vince Grochocinski, and Tom Pekras Commission members absent: Don Ocwieja Staff present: Director of Finance Amit Thakkar, Assistant to the Director of Finance Jennifer Fitzgerald, Director of Public Works Sean Dorsey, Deputy Director of Public Works Jason Leib, Assistant to the Village Manager Alexander Bertolucci II. Approval of Minutes a. Commissioner Grochocinski, seconded by Commissioner Pekras moved to approve the minutes of the Finance Commission regular meeting of May 27, 2021 as amended. Chair Chokshi called a voice vote. Motion passed unanimously. III. Citizens to be Heard None. IV. Old Business None. V. New Business a) Integrating Electric and Hybrid Vehicles in the Village Fleet — PW Director of Public Works Sean Dorsey began the alternative fuel discussion by reviewing the Village's fleet profile that included a distribution of assets by department and by type (i.e. heavy-duty trucks, light-duty trucks, police vehicles, sedans, etc.). He provided an overview of the Village's 2015 Alternative Fuels Study completed by Mercury Associates, Inc. The study evaluated biodiesel, ethanol, compressed natural gas (CNG), liquefied natural gas (LNG), propane, hybrid electric vehicles (HEV), and plug-in hybrid electric vehicles. The overall conclusion at that time was adding alternative fuel vehicles to the fleet would not be advantageous due to the relatively small size and low volume of fuel consumption by the fleet, the high costs of building or accessing alternative vehicle fueling infrastructure, low prices of conventional fuels, and the increasing fuel efficiency of conventionally fueled vehicles. He stated that since the 2015 study, Public Works believes the integration of more HEVs should be a key pillar of fleet sustainability strategies because there are many more commercially available HEVs than EVs presently. He reviewed charging equipment, the different levels of charging, and infrastructure costs/needs for charging equipment. Finance Commission Page 1 of 3 6/23/2021 Director of Finance Amit Thakkar presented the current vehicle replacement schedule (2021 — 2025). Staff would need to adjust lease payments to purchase electric cars, since they cost more than internal combustion engine vehicles, and would require charging infrastructure. These lease payments would need to increase over time and lease payments impact the general fund. Staff proposes a vehicle transition and feasibility planning study in 2022. Staff provided the following in response to questions from the Finance Commission: • Vehicle equivalent units factor in maintenance costs • Full electric vehicles were not around in 2015 • Vehicle manufacturers committing to full electric or carbon neutral by 2035 • Internal combustion vehicles would not be able to be retrofitted • Federal legislation requires better fuel mileage, reducing air pollution and decreasing vehicle emissions. • The Vehicle Maintenance Division tracks repair and replacement costs. • Postponing capital expenditures reduce lease payments; however, it also does not take advantage of the lowest cost of ownership • Public Works uses outside labor for certain vehicle maintenance repairs • Monitoring hybrid vehicle resale values; however, staff needs more experience • The charging stations in Village parking decks charge $1/hour. An App is required and a customer would have to set up an account • Public Works and Community Development is working on concepts for residential charging solutions • Once funds are available to replace a vehicle, staff stops replacement funding for that vehicle • Police cars put on the most miles, hybrid electric seem like a great solution • Ford Explorer hybrid is only the option available as a pursuit vehicle • The Village received grant money for charging stations installed in the Maple Street and Emerson Street Parking Decks. • Charging stations and related infrastructure piece needs planning on a larger scale. • Estimating $40,000 for the study in 2022. b) Audit Update Commission Grochocinski, who is also a member of the Audit Committee, reviewed the Auditors presentation from the June 22 Audit Committee Meeting. The auditors issued a clean report and the Finance Department will apply for the annual Government Finance Officers Association award. Director of Finance Amit Thakkar gave a high-level review of the 2020 audited financials. c) American Rescue Plan Director of Finance Amit Thakkar shared information on the American Rescue Plan and eligible uses for received funds. Staff is requesting additional guidance from the Department of Treasury regarding eligible uses. The draft plan is to allocate $1 million for Human Services and Community Development, $2.1 million for Water and Sewer Projects and $3.9 million is eligible revenue loss. He reviewed eligible programs and projects identified so far. He stated this preliminary and discussion would continue into the next meeting. Finance Commission Page 2 of 3 6/23/2021 There was general discussion on hiring more social workers and presenting specific Human Services programs to the Commission. Staff provided the following in response to questions from the Finance Commission: • Finance will need separate accounting for these funds • Funds are coming directly from the federal government • The Village used most of our CARES Act funds to offer a Restaurant Assistant Grant. • Will be meeting with Human Services Department to further review their need assessment. • American Rescue Plan funds need to be spent by 2024. • This is a draft plan and it is going to change. VI. Any Other Business None. VII. Chairman's Report None. VIII. Finance Director's Report None. XI. Next Meeting: July 22, 2021 —Village Hall, 50 S. Emerson St., Executive Conference Room, 31 Floor IX. Adjournment: Motion by Commissioner Arndt, seconded by Commissioner Bjekic, to adjourn the meeting. Chair Chokshi called a voice vote. Motion Carried unanimously. The meeting adjourned at 8:53 pm. Alexander Bertolucci Assistant to the Village Manager Finance Commission Page 3 of 3 6/23/2021